The censorship is targeted at the impoverished masses, the cheap labour base the creates Indian multi-millionaires while that labour is dresses in rags. With access to internet cafes available every where, the ruling elite do not want the labour base to become to aware of the gap between rich and poor in India and of course the gap between India workers and first world workers doing the same work.

They have quite successfully be divided up by castes, religion and ethnicity, to keep them struggling amongst themselves but eventually they would work together to tackle those they keep them impoverished and a free and open internet would accelerate that.

The Indian courts have not explicitly blocked file sharing sites. All they have provided is a generic order [google.com] to stop the copyright infringement. The company Copyright Labs [facebook.com] which is looking to stop the piracy of its films, maintain that they provided the ISPs with a list of specific URLs that were to be blocked. The ISPs have apparently decided (40 days after the blocks were requested) to block entire domains rather than individual URLs. One of these parties is liable for damages for the blanket blocks.